One size fits all underwriting strangles business
Half of brokers (46%) have encountered issues when it comes to proving affordability, while a quarter (25%) expects the number of clients being rejected by lenders to increase in the New Year.
A third (33%) said their clients have fallen foul of standard computer lending models.
Steve Griffiths, head of sales and distribution at Kensington, said: “Underwriting is crucial to the mortgage process as Kensington’s experience over 20 years in the specialist market demonstrates. Lenders can help brokers by taking a more individual look at applications rather than simply relying on standard models of affordability and income.
“Mortgage customers are increasingly turning to brokers in order to secure deals as reflected in the growing market share for intermediaries against direct lenders.
“However brokers are clearly also experiencing issues in placing business and are having to work harder to ensure borrowers can access mortgage finance which is why we are investing to help intermediaries identify and support specialist customers.”
Two in five (38%) brokers said issues with credit histories was a major problem, while a similar proportion (36%) has encountered problems in proving self-employed incomes.